The Ministry of Finance states that, in order to coordinate with the UK Government’s response to the COVID-19 pandemic, UK residents, while applying for a tax exemption or deduction provided by the TW-UK tax agreement as of April 8, 2020, may submit digital Certifications of Residence (hereinafter referred to as CORs) to the tax authorities of Taiwan as certification of UK residency. The date to end this time-limited measure will be jointly decided by competent authorities of Taiwan and the UK according to developments as the pandemic unfolds.

    The Ministry of Finance explains that, “Regulations Governing the Application of Agreements for the Avoidance of Double Taxation with Respect to Taxes on Income” provides that, a resident of the other Contracting State, while applying for a tax exemption or deduction provided in a tax agreement, shall submit the COR issued by the tax authority of that other Contracting State. Before the outbreak of the COVID-19 pandemic, the CORs of the UK were issued by HMRC with wet ink signatures on paper. HMRC takes alternate arrangements by issuing digital CORs as a response to the COVID-19 pandemic and the work-from-home policy undertaking by the UK government. Both competent authorities of Taiwan and the UK have mutually agreed that, starting from April 8, 2020 and lasting for a time-limited period, during the unprecedented COVID-19 pandemic, the Taiwanese tax authorities will accept UK residents submitting digital CORs as a certification of UK residency while applying for a tax exemption or deduction as benefits provided by the TW-UK tax agreement.

    The Ministry of Finance reminds taxpayers that they may make good use of the tax treaty network to eliminate the double taxation arising from cross-border activities and transactions and to pay their fair share of tax, therefore enhancing international competitiveness.

Contact person: Mr. Kevin Pao, Section Chief
Contact number: +886-2-23228150